Missouri Utility Sales Tax Exemption

Manufacturers and industrial processors with facilities located in Missouri, may be eligible for a utility tax exemption. Missouri offers an exemption from state sales tax on the purchase of electricity, natural gas, and water used in qualifying production activities. This tax exemption is authorized by Section 144.054, RSMo.

Exemption Language of Section 144.054, RSMo

"Electrical energy and gas, whether natural, artificial, or propane, water, coal, and energy sources, chemicals, machinery, equipment, and materials used or consumed in the manufacturing, processing, compounding, mining, or producing of any product, or used or consumed in the processing of recovered materials, or used in research and development related to manufacturing, processing, compounding, mining, or producing any product" is exempt from state sales tax, but not local."

Utility Study Requirement for Exemption Qualification

A Missouri utility tax study must list every piece of equipment and appliance (production and non-production) that uses the utility and the annual consumption of each. Failure to properly calculate or classify utility usage is cause for denial of the exemption. A square footage analysis may also be appropriate in Missouri.

Missouri Statute of Limitations on Tax Refund

10 years

State Sales Tax Rate: 4.225%

Average Local Sales Tax Rate: 3.96%

Helpful Resources

Missouri Utility Exemption Certificate: Exemption Certificate Form 149

Missouri Utility Exemption Statute/Rule: Section 144.054, RSMo

Missouri Claim Form for Tax Refund: Claim Form 472P